Hainan's 'fragrant valley' has sweet smell of success

Cultivating success

With over three decades' experience in planting agarwood, Hainan Minghe Agarwood Industrial Co is a pioneer in the local industry. Cultivating Hainan native Aquilaria sinensis trees on 333 hectares, it has built the largest production capacity in the county.

The company has launched a series of popular products, including agarwood incense sticks, bracelets, essential oils, moxibustion sticks, tea, and agarwood-infused alcohol.

"Our turnover in 2022 exceeded 26 million yuan, and last year, we reached over 70 million yuan," said Hu Yanming, president of the company.

"We are excited about the prospect of creating even greater value this year," Hu said.

With the support of local village committees, the corporation has forged business partnerships with over 200 farmers.

Unlike other tropical crops, agarwood is a plant that typically requires three to six years to mature, so ensuring a stable income for farmers cultivating agarwood has been a top concern.

Hu said his company introduced the "two free and two allocation" model in 2018 to help farmers. Under the model, farmers are exempt from paying for plant seedlings and resin production costs. Once a contract is signed, the company allocates funds to the farmers twice, providing them with peace of mind and a reliable source of income, he said.

"This model not only supports the cultivation of agarwood, but also fosters a sustainable and mutually beneficial partnership between the corporation and the farmers," said Wu from Tunchang county government.

A cluster of leading enterprises specializing in agarwood planting, processing, and trading, is also being nurtured by the county government.

An international trade center will also be established to facilitate global trade in agarwood products.

In addition, Tunchang county is looking to create agarwood-themed health tourism spots, museums, and towns, that offer visitors an immersive experience tied to agarwood heritage.

Other measures to boost the industry include the establishment of a logistics center and modern distribution facilities to aid the transportation of agarwood, said Li from the county's development commission.

High-tech help

Aquilaria trees undergo a natural process of agarwood resin formation due to environmental "stress factors", including insect bites, animal grazing, wind, rain, and lightning strikes, and bacterial erosion.

Agarwood resin production typically involves two main methods — traditional natural practices and artificial induction via bio-inoculants and chemical inducers.

To stimulate the harvest of agarwood resins, many farmers often resort to mimicking the natural process of agarwood formation by deliberately exposing the inner parts of trees to pathogens and insect infestations. This is typically accomplished through physical stress to the trees, such as making incisions, digging holes, or creating wounds using tools like nails, axes, or screws.

These practices, however, can potentially harm the overall growth and health of agarwood trees.

Recognizing this risk, researcher Yang Yun and his team at the Hainan Branch Institute of Medical Plant Development of the Chinese Academy of Medical Sciences, developed groundbreaking technology that involves the infusion of bio-inoculants directly into the trunk of agarwood trees.

"This innovative approach has effectively addressed long-standing challenges in agarwood resin production, providing a more controlled and efficient means to obtain this valuable resource," Hu, from Hainan Minghe Agarwood, said.

With more than a decade of research and study, Hainan Haixiangyuan Investment Co, is another trailblazer in the county dedicated to agarwood cultivation.

The company has made strides in preserving high-quality agarwood varieties on the verge of extinction in Hainan.

"We have invested more than 10 million yuan in the breeding of 2.6 million Hainan native Aquilaria sinensis trees," said company chairman Wang Haixiang, who moved from Beijing to Tunchang in 2013.

"Our vision is to leverage advanced breeding and resin production technology to cultivate the best agarwood with exceptional medical value, thereby empowering Tunchang county to establish a distinctive edge in the agarwood industry, and supporting local farmers in reaping the benefits of cultivating this valuable resource."

Haixiangyuan has achieved success by overcoming technical challenges associated with tree decay, which has helped unlock the secrets of producing the finest quality agarwood.

The corporation also produces agarwood products tailored for women and has collaborated with the Macao International Agarwood Culture Promotion Association to develop pharmacological uses for agarwood, with the intention of distributing them in markets in Europe, the United States, the Middle East, Japan, and South Korea.